Published: Friday, January 18, 2013 at 4:50 p.m.

Last Modified: Friday, January 18, 2013 at 4:50 p.m.

SARASOTA - A new Sarasota resident is hoping to create a new airline based at Sarasota-Bradenton International Airport.

But to do so, Stephen Miller and his wife, Hannah, say they need to raise roughly $30 million to launch the proposed Sunrise Airlines of Sarasota.

To date, the couple have not persuaded any investors, though they have developed a detailed business plan that involves flying nonstop to 24 cities as far away as Los Angeles.

In addition to financing, the Millers also will need Federal Aviation Administration approvals, for which they have yet to submit any necessary documents.

Stephen Miller, 73, an airline veteran, said he was moved to create a carrier after moving to Longboat Key with his wife in 2011. Conditions were exacerbated last summer, when AirTran Airways — Sarasota-Bradenton's second-largest carrier — pulled out.

"Sarasota-Bradenton residents and visitors have endured inferior air connections for too long," Miller said. "The long journey time it takes to get through connecting airports discourages travelers, especially older people."

Sunrise's nonstop flights would be "two to six hours" shorter than most connecting flights, he said.

But unlike AirTran, its fares would be full-priced, though competitive with other local carriers. AirTran flew 365,000 passengers into and out of the market in 2011, and put pricing pressure on competing carriers. Since AirTran's exit, carriers such as United Airlines, JetBlue and Delta have filled in some route gaps.

The Millers' plan comes as Sarasota-Bradenton passenger traffic is expected to dip by 15 percent, largely the result of the loss of AirTran, said airport chief executive Fredrick "Rick" Piccolo.

Piccolo said the Sunrise plan could receive a welcome response in Southwest Florida.

"There is enough affluence in this area to help raise the money needed to start this project," said Piccolo, who has met with the Millers to discuss their proposal. "It comes down to credibility with investors."

Economic development "impact"

Miller established Sunrise a year ago, with an aim toward leasing at least four Boeing 737 airplanes.

He hopes to begin offering flights from Sarasota by October 2013.

With $30 million from investors, Miller contends that he could generate $164.3 million in earnings before taxes by the end of Sunrise's first year of operation.

By the fourth year, Miller believes his airline could earn $76.1 million.

If Sunrise does take flight, it could dramatically alter local passenger counts, which have fallen along with the number of carriers and flights offered because of industry consolidation.

In 1990, for example, Sarasota-Bradenton had 2 million passengers and 12 airlines that offered direct and nonstop flights to 14 destinations. Eleven years later, it had 1.3 million passengers, with only four airlines and a total of 10 destinations.

In its first year, Miller hopes to fly Sunrise to eight cities, including Baltimore, Detroit, Indianapolis and Boston. Some of those communities were served by AirTran.

A leading industry analyst said he believes Sunrise could fill a niche.

"Sarasota can take a whole lot more traffic, and research shows there's a market for that," said Michael Boyd, chairman of Boyd Group International, a Colorado-based aviation firm.

Visit Sarasota County, the county's tourism agency, said new flights would mean increased marketing.

"We would be very excited to promote it, they just have to crack that $30 million investment first," said Virginia Haley, president of Visit Sarasota County.

Challenges ahead

Miller acknowledges that he has significant challenges ahead. The FAA application alone to create an airline is both lengthy and expensive.

Airlines must also have valid certificates, too, which can be purchased from folded operations or granted by the FAA.

Just five airlines applied for certificates in 2010, federal records show, and of those, only three were approved. Three more airlines applied in 2012, but none was granted before year-end.

The Millers have yet to acquire a certificate or file for an FAA license.

Sunrise, however, would not be the couple's first airline startup. Stephen Miller founded Dragonair, a Hong Kong-based airline that launched in 1984.

He also was CEO of Oasis Hong Kong Airlines from 2004 until 2008, when the airline shut down following a shareholder dispute.

The couple also are not the first entrepreneurs to try and start a local airline. Piccolo said that in his 42-year career in the aviation business, he has witnessed roughly 50 serious inquiries. Few have succeeded.

"Mr. Miller is not a novice to the airline industry," Piccolo said. "His plan is ambitious, but not impossible."

Boyd agrees.

"Friends don't let friends start an airline," Boyd said. "But this is a guy who has already done it. There are many, many hurdles to go through, but that doesn't mean it can't be done."

<p><em>SARASOTA</em> - A new Sarasota resident is hoping to create a new airline based at Sarasota-Bradenton International Airport. </p><p>But to do so, Stephen Miller and his wife, Hannah, say they need to raise roughly $30 million to launch the proposed Sunrise Airlines of Sarasota.</p><p>To date, the couple have not persuaded any investors, though they have developed a detailed business plan that involves flying nonstop to 24 cities as far away as Los Angeles.</p><p>In addition to financing, the Millers also will need Federal Aviation Administration approvals, for which they have yet to submit any necessary documents.</p><p>Stephen Miller, 73, an airline veteran, said he was moved to create a carrier after moving to Longboat Key with his wife in 2011. Conditions were exacerbated last summer, when AirTran Airways — Sarasota-Bradenton's second-largest carrier — pulled out.</p><p>"Sarasota-Bradenton residents and visitors have endured inferior air connections for too long," Miller said. "The long journey time it takes to get through connecting airports discourages travelers, especially older people."</p><p>Sunrise's nonstop flights would be "two to six hours" shorter than most connecting flights, he said.</p><p>But unlike AirTran, its fares would be full-priced, though competitive with other local carriers. AirTran flew 365,000 passengers into and out of the market in 2011, and put pricing pressure on competing carriers. Since AirTran's exit, carriers such as United Airlines, JetBlue and Delta have filled in some route gaps.</p><p>The Millers' plan comes as Sarasota-Bradenton passenger traffic is expected to dip by 15 percent, largely the result of the loss of AirTran, said airport chief executive Fredrick "Rick" Piccolo. </p><p>Piccolo said the Sunrise plan could receive a welcome response in Southwest Florida.</p><p>"There is enough affluence in this area to help raise the money needed to start this project," said Piccolo, who has met with the Millers to discuss their proposal. "It comes down to credibility with investors."</p><p>Economic development "impact"</p><p>Miller established Sunrise a year ago, with an aim toward leasing at least four Boeing 737 airplanes.</p><p>He hopes to begin offering flights from Sarasota by October 2013.</p><p>With $30 million from investors, Miller contends that he could generate $164.3 million in earnings before taxes by the end of Sunrise's first year of operation.</p><p>By the fourth year, Miller believes his airline could earn $76.1 million.</p><p>If Sunrise does take flight, it could dramatically alter local passenger counts, which have fallen along with the number of carriers and flights offered because of industry consolidation.</p><p>In 1990, for example, Sarasota-Bradenton had 2 million passengers and 12 airlines that offered direct and nonstop flights to 14 destinations. Eleven years later, it had 1.3 million passengers, with only four airlines and a total of 10 destinations.</p><p>In its first year, Miller hopes to fly Sunrise to eight cities, including Baltimore, Detroit, Indianapolis and Boston. Some of those communities were served by AirTran.</p><p>A leading industry analyst said he believes Sunrise could fill a niche.</p><p>"Sarasota can take a whole lot more traffic, and research shows there's a market for that," said Michael Boyd, chairman of Boyd Group International, a Colorado-based aviation firm.</p><p>Visit Sarasota County, the county's tourism agency, said new flights would mean increased marketing.</p><p>"We would be very excited to promote it, they just have to crack that $30 million investment first," said Virginia Haley, president of Visit Sarasota County.</p><p>Challenges ahead</p><p>Miller acknowledges that he has significant challenges ahead. The FAA application alone to create an airline is both lengthy and expensive.</p><p>Airlines must also have valid certificates, too, which can be purchased from folded operations or granted by the FAA.</p><p>Just five airlines applied for certificates in 2010, federal records show, and of those, only three were approved. Three more airlines applied in 2012, but none was granted before year-end.</p><p>The Millers have yet to acquire a certificate or file for an FAA license.</p><p>Sunrise, however, would not be the couple's first airline startup. Stephen Miller founded Dragonair, a Hong Kong-based airline that launched in 1984.</p><p>He also was CEO of Oasis Hong Kong Airlines from 2004 until 2008, when the airline shut down following a shareholder dispute.</p><p>The couple also are not the first entrepreneurs to try and start a local airline. Piccolo said that in his 42-year career in the aviation business, he has witnessed roughly 50 serious inquiries. Few have succeeded.</p><p>"Mr. Miller is not a novice to the airline industry," Piccolo said. "His plan is ambitious, but not impossible."</p><p>Boyd agrees.</p><p>"Friends don't let friends start an airline," Boyd said. "But this is a guy who has already done it. There are many, many hurdles to go through, but that doesn't mean it can't be done."</p>